FIN3703 ASSESSMENT 1 SEM 2 OF 2025 EXPECTED QUESTIONS AND SOLUTIONS

SECTION A



QUESTION 1

Solution: 3. b and c



QUESTION 2

, Solution: 1. a



QUESTION 3

Solution:

Interest = R350,000 × 10% × (29/365) = R2,780.82



QUESTION 4

Solution:

- Limpopo (debit R400,000): Interest payable = 400,000 × 10% = R40,000

- Gauteng (credit R350,000): Interest earned = 350,000 × 7% = R24,500

- KZN (debit R200,000): Interest payable = 200,000 × 10% = R20,000

- Northwest (debit R100,000): Interest payable = 100,000 × 10% = R10,000

Net interest payable = (40,000 + 20,000 + 10,000) – 24,500 = R45,500



QUESTION 5

Solution:

Master account balance = –400,000 + 350,000 – 200,000 – 100,000 – 1,000,000 = –
R1,350,000 (debit)



QUESTION 6

Solution:

Without pooling: Net interest payable = R45,500 (from Q4)

With pooling: Net interest on master account = 1,350,000 × 10% = R135,000 (payable)

Value added = 135,000 – 45,500 = R89,500 (additional cost, so disadvantage)



QUESTION 7